Social media platform Snap says the market is difficult to forecast because of Russia’s invasion of Ukraine, supply chain disruptions, labour shortages and inflationary pressures
The company just released March quarter results showing Daily Active Users up 18% year-over-year to 332 million. Revenue grew 38% to $US1.06 billion.
“On the revenue side, forward looking visibility is as difficult today, or perhaps more difficult, than at any point in recent memory,” Jeremi Gorman, chief business officer, told an analyst briefing.
“We believe the bigger challenge to forward looking visibility is the uncertain operating environment.
“The macro headwinds we observed in Q1, including supply chain disruptions, labour shortages, inflationary pressures, and the impact of rising interest rates on the overall economic environment remain challenges as we enter Q2.
“We believe the impact of the war in Ukraine on input costs, marketing budgets, and overall economic confidence has been significant, and that it is difficult to predict its impact on a forward looking basis.
“Given the uncertainty caused by these challenging circumstances, we have opted to share that our growth rate thus far in Q2 is approximately 30% year over year, or just below the approximately 32% growth rate we observed following the invasion of Ukraine in Q1.
“That said, we are concerned that the operating environment ahead could be even more challenging, leading to further campaign pauses or advertiser budget reductions.”
Snap has given revenue growth guidance of 20% to 25% in the June quarter.
Evan Spiegel, CEO: “We remain focused on providing value for our growing community, delivering ROI for our advertising partners, and investing against our enormous opportunity in augmented reality.”
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